Automotive IoT Market Worth $322.0 Billion by 2028
Northbrook, IL 60062 -- (SBWire) -- 03/17/2023 --The automotive IoT market is projected to grow from USD 131.2 billion in 2023 to reach USD 322.0 billion by 2028; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 19.7% from 2023 to 2028 according to a new report by MarketsandMarkets™. The growth of the automotive IoT market is driven by the increasing number of regulations mandating advanced features in vehicles for enhanced user comfort, safety, and convenience coupled with growing use of telematics and user-based insurance programs are the major factors driving growth of the automotive IoT market.
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By offering, the software segment is projected to hold the largest share of the automotive IoT market during the forecast period.
The software segment held the largest share of the overall automotive IoT market, in terms of value, in 2022. The software market includes platforms and solutions which are crucial to the functioning of IoT in an automobile. Software solutions are designed to meet interoperability challenges that arise on account of varied heterogeneous devices and to manage large volumes of data as well as its security and privacy. Factors such as the rising adoption of connected cars and the evolution of high-speed networking technologies have paved the way for the adoption of IoT software solutions.
By connectivity form factor, integrated system segment is projected to exhibit highest CAGR for the automotive IoT market during the forecast period.
The market for the integrated form factor is expected to grow at the highest CAGR of during the forecast period. There is reduction in up-front hardware connectivity costs in vehicles as user has to pay for network data cost. and as communication costs are directly tied to user, it allows the person to use according to the requirement. These are the major factors leading to higher growth of the integrated connectivity market.
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North America is expected to hold the largest share in the market by 2028.
The North American region is expected to hold the largest share of the automotive IoT market during the forecast period. The US is a major contributor to the growth of the automotive IoT market in North America. North America has been a pioneer in adopting most technological innovations and technological advancements, so the adoption of IoT in North America in the automotive sector has been profound. The region is home to the big 3 of the automotive industry—Ford Motor Company (US), General Motors (US), and Fiat Chrysler Automobiles (US). These companies have been providing connectivity services, which is the major factor driving the market. There has been a significant rise in the investments made by the governments and different companies in this region that are accelerating the adoption of IoT solutions in vehicles.
The North America region is witnessing enormous demand for self-driving cars owing to the high purchasing power as well as access to superior technology. The emergence of self-driving car technology in the North American market is an important trend in increasing the demand for advanced connected car features. The market is already witnessing high growth of advanced driver assistance systems (ADAS) solutions. This has propelled the automotive IoT market forward in North America. Furthermore, the use of IoT for car health diagnostics is expected to be a significant contributing factor in the future. The measures adopted for environmental safety, like pollution reduction, will further supplement the need for regular information on the health of a car. This is expected to further increase the demand for automotive IoT offerings in the near future.
Key players in the automotive IoT market include NXP Semiconductors (Netherlands), Harman (US), Robert Bosch (Germany), Thales (France), TomTom International (Netherlands), IBM (US), Geotab Inc. (Canada), Texas Instruments (US), Intel Corp. (US), Eurotech (Italy), STMicroelectronics (Switzerland), Renesas (Japan), Infineon Technologies (Germany). Apart from this, Airbiquity (US), Qualcomm (US), Visteon (US), Vodafone Group (UK), Microsoft Corporation (US), Alphabet Inc. (US), AT&T (US), Cloudmade (UK), Sierra Wireless (Canada) are among a few emerging companies in the automotive IoT market.
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